And to keep that garter stitch groove going on - I started a Moderne Baby Blanket (from Mason Dixon book - here's a link for a free pdf of the pattern). I'm quite liking it so far (but the stripes take longer every time as the blanket starts to grow in size). The yarn is Katia Mississippi, a cotton acrulic blend.

I was right: the sleeve cap was way too tight. I frogged the last three rows a couple of times, and worked them again with larger needles, but that wasn't enough. Finally I decided to decrease less stitches in the 7th row: I worked k1,k2tog,k1,k2tog, etc. And that really did the trick!

The most complicated part of this pattern is attatching the circle insert and the sleeves. I blocked the insert with the front piece and pinned it directly to place when taking the pieces off the blocking board. That worked quite ok, even though it was quite difficult to sew it neatly. The sleeves were impossible to attach perfectly, maybe because I had blocked them too much... I hope they'll look better after first wash.

I made the body about 1/2" longer (and I am quite short) but it's still too short for my taste. I'd also add a bit more shaping, I think. Or make it wider in the bottom. Oh, I made a size 37", so I had to do some math.

The yarn was great, but the skeins were quite different. There are much more white streaks in the front than in the back. But it's a great value - less than 14$ for this!